Hey Hot Potatoes,

Welcome to the latest edition of the Hot Potato Newsletter. For all of those WWE fans out there, do you remember Shane McMahon’s entrance walk to ‘Here comes the Money’? Well if you don’t, look it up, because after reading this article, that’s how you’re going to be feeling. In this article I will walk you through some of the common tips and tricks you can use to start getting customer spend higher and bring you higher profits too, what’s not to like? We’re going to explore everything from the psychological tricks to use on your menu, to the important role your staff plays, and then add a sprinkle of some more compelling strategies. Grab your hot brew of choice and let’s get into this week’s Hot Potato.

In today’s email: The Psychology of Upselling - What Every Restaurant Owner Should Know.

Read Time: Approx 7 mins

The psychology behind your menu.

Source: Fallow 

The menu is where it all starts and where there is a big opportunity to maximise the amount your customers are spending. There’s a lot to be said about the role psychology plays in our decisions, especially when it comes to menu choices.

Key Points:

1. ‘The Golden Triangle’: As the team at Fallow explain, diners tend to look at the menu from the middle first, to the top right then the top left, hence the name ‘The Golden Triangle’. Consider this for the layout of your menu and ensure you strategically place your highest profit margin dishes based on the triangle rule.

2. Top Two: The top two dishes in each section of your menu are typically what diners tend to order the most, preferring to spend less time choosing and more time dining. These slots are also where you should be placing your highest profit margin dishes, helping to capitalise on this customer behaviour.

3. Seven Heaven: The general rule is that you shouldn’t have more than seven dishes in each section. Too much choice leads to overwhelm, and your customers want the least stressful experience possible. By having no more than seven dishes in each section, you still offer enough choice while also making it easier to manage operationally too, a win win.

4. Giving Value: Customers want to feel as if they’re getting value as well as the best experience. By offering dishes that are chosen by the chef or highlighted as star dishes on the menu, the customer’s perception is they are getting more value from their meal.

As we can see, there are a whole load of psychological tools that you can start to implement to encourage more customer expenditure. What are some of the changes you’re going to make to drive sales further and profits higher?

Your staff are your secret weapon.

Source: Fleximise / Tablecheck

Your staff are your story tellers and the ones that can have the biggest influence on your customer’s choices. It’s important they are well versed in your restaurant story, it’s theme, the menu items and wine pairings; this will mean they can answer every question diligently and give your customers the best answers and suggestions.

Key Points:

1. Ask Questions: Like any good sales person would, ask the customer as many questions as possible to ensure you are getting their order right and to their liking. Uncover potential upsell opportunities e.g. suggest wine pairings, ask if they’d like to add sides and find out their personal preferences too. Getting information on your customers will also give you an idea on what they are willing to spend.

2. Menu Knowledge: Make sure your staff know your menu well so they are not only able to answer questions on it, but are also able to pin point the right time to upsell and push higher profitable dishes if the opportunity presents itself. Like any industry you want to be seen as an expert in your role and provide a consultative service.

3. Knowing your Customers: People buy from people, it’s cliché but true. Build rapport with your customers, make them feel comfortable in the environment they’re in and create a really welcoming atmosphere. You’ll see that they will be open to spending more time and money the more comfortable and content they feel. It’s all about giving your customers a positive experience. Getting personal with your customers will also make it easier to upsell, as even if they know it’s an upsell, they trust you that it’s worth it.

4. Knowing Boundaries: Upselling, like everything in life, is best done in moderation. It’s important to understand your customer and tailor your service to their needs i.e. if they’re not overly responsive to your suggestions, then give them time to make a decision, otherwise they may get irritated and have a desire to leave.

Your staff are integral to your business, and we know how hard it can be to get the right staff who are just as passionate about your business as you are. It’s important you invest in your staff and take the time to train them correctly, as it will ensure they know how to sell your offering the right way and understand the nuances when it comes to upselling vs when to not. Make sure to praise your team when they show they have tried and of course when they get it right!

The sweeteners.

Source: Tablecheck / Oracle

In true upselling fashion, we look at the additional levers you can pull to generate more revenue from your customers.

Key Points:

1. Packages and Bundles: Customers are value seekers and are constantly searching for the best value, so getting them to spend more can be challenging. Some of something is better than none of nothing, which is why designing packages and bundles can be a good way to entice your customers to spend more. Whether that’s a special two or three course meal, or a bundle offering whereby purchasing multiple products gets you a discount, you’re giving value and getting more spending in return .

2. Sides and Add Ons: These are quick wins to drive up the average order value. Your menu should have these clearly laid out and your staff should simply be suggesting these regularly with the goal of increasing customer spend. At the end of the day, it all adds up.

3. Desserts and Drinks: Similar to the above, these menu items are a real treat and an extra indulgence that is also an opportunity to upsell. Diners who go out typically do so as a treat, so leverage this and tempt them with something a bit on the naughty side!

By offering packages and bundles, promoting sides and add-ons, and tempting customers with desserts and drinks, you can effectively boost your average order value. The key is to implement these strategies thoughtfully, ensuring that staff are well-trained to suggest additional items without being pushy. Ultimately, when executed correctly, these tactics can lead to satisfied customers who receive a fuller dining experience while simultaneously improving your restaurant's bottom line.

Marketing and data.

Source: SevenRooms

Before customers even set foot in the door, using marketing tools and data can give you an advantage from the get go.

Key Points:

1. Data: As we’ve previously explored, using CRM platforms like SevenRooms, gives you a swathe of data on your customers… their average spend, frequency of visits and order history amongst many other data points. By knowing your customer’s profile and spending habits, you have a much better understanding on where you can try to upsell certain products. If you know who your big spenders are, why not let them know about the new range of wine you have in?

2. Marketing: If you can’t necessarily get a customer to increase their spend with you, you could try to increase their number of visits to your venue. More visits = more revenue after all, right? By using marketing emails, you can provide personalised offers and encourage your customers to return. This could be giving customers a reward for visiting a certain number of times e.g. a free drink or dessert for their 10th visit or purchase to say thank you. Or perhaps you send a personal message from the owner expressing your gratitude, making them feel valued, this engagement goes a long way.

The importance of using data to your advantage can’t be overlooked. The more you know about your customers, the more leverage you have to upsell to them. It’s always worth looking at platforms like SevenRooms if you have lot of customers who dine in.

Today we’ve run through some of the most common and simple ways you can upsell to your customers to increase your revenue. Which strategies are you going to consider implementing?

In next week’s edition we take a look at some of the hottest pop-ups right now and who has the potential to be our future hospitality icons… stay tuned to find out who makes it on the list.

If you have any questions or if there are any topics you’d like to know more about, send them over!

Thanks for reading and don’t forget to subscribe to stay updated weekly on all things hospitality!

Bon appétit,

Max Shipman, Editor-in-Chief, Hot Potato

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